The Cabinet Secretary, of the Ministry of Roads and Transport has established a task force on the Development of National Electric Mobility Policy, Strategy, Legislations and Regulations (the e-Mobility Taskforce) and appointed Daniel Ngumy, Managing Partner and Head of Tax of ALN Kenya, as the Chairperson of the Taskforce.
Through Gazette Notice 10132 of 2023 dated 4 August 2023, the Cabinet Secretary established the e-Mobility Taskforce with the key objective being the development of a national e-Mobility policy to promote the growth and development of e-Mobility in Kenya, including a national e-Mobility policy, e-Mobility strategy and implementation plan, e-Mobility legislations and regulations, e-Mobility guidelines and a Regulatory Impact Assessment.
In fulfilling its core mandate, the Taskforce will be required to
- review the existing policies, legal, institutional and operational environment around e-Mobility in the country;
- identify and recommend legal, policy, institutional frameworks necessary to support implementation and growth of e-Mobility;
- undertake assessment and recommendation on the impact of adopting the e-Mobility policy on green energy exploitation;
- review the impact of adopting e-Mobility on sustainability of the Road Maintenance Fuel Levy Fund;
- review the existing fiscal policy and make recommendations that support growth and development of e-Mobility in Kenya;
- review the human capital management and develop policies required to support the development, growth and implementation of the e-Mobility; and
- any other assignment incidental to the achievement of the task.
The Role of the Taskforce and the Future of e-Mobility in Kenya
Kenya’s commitment to addressing climate change by promoting e-Mobility is futuristic and globally pace-setting. As a signatory of the Paris Agreement, the recently introduced fiscal incentives are crucial in advancing Kenya’s efforts to achieve its Nationally Determined Contributions and international climate change goals. However, to fully realise the potential of electric vehicles and accelerate the e-mobility revolution, both fiscal and non-fiscal incentives must be expanded and strategically implemented.
The backdrop of these changes is the increasing cost of fossil fuels, with Kenya’s import bill for petroleum fuels having almost tripled from approx. KES 263 billion in 2017 to approx. KES 628 billion in 2022. With mass adoption of EVs, the reduction in the fuel import bill could help the country to improve on its forex reserves which, in turn, could be channelled to develop other productive sectors of the economy.
The Energy and Petroleum Regulatory Authority (EPRA) has also recently introduced reduced special electricity tariffs for e-Mobility during peak and off-peak periods which will further incentivise the critical mass adoption of EVs.
Important issues that the Taskforce will need to consider include the development of a national policy which will spur the widespread adoption of EVs, without hindering innovation through regulation, considering issues relating to deployment of e-Mobility charging infrastructure in various towns (including in partnership with petrol stations), creation of an efficient registration and licensing system for EVs at the National Transport and Safety Authority (NTSA) amongst others.
On the fiscal front, the Taskforce will need to consider the additional incentives relating to lowering taxes on charging infrastructure, enhancement of incentives for EV assembly plants amongst others.
The Transition to e-Mobility
As Kenya continues to pursue its climate change goals and drive economic transformation, fostering the widespread adoption of EVs must remain a focal point. The Taskforce will aim to tap into the collective efforts of the government, private sector and development partners to achieve the Government’s vision of a greener, cleaner, and more sustainable future powered by e-Mobility for Kenya and for Africa. Embracing the potential of electric vehicles contributes to a healthier environment and positions Kenya at the forefront of global efforts in combating climate change.